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TRAINING IN POSTHARVEST TECHNOLOGY

Extension Systems International
P.O. Box 3130
Quartzsite, Arizona 85359 USA
Phone: (916) 708 7218

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PostHarvest Training of Trainers

COSTS AND BENEFITS

Decay problems and food safety problems can be caused by unsanitary wash water.

Costs and Benefits of Changes in Postharvest Technology Practices

Cost and Benefit examples

COMPARISON OF ESTIMATED COSTS AND EXPECTED BENEFITS OF USING PLASTIC CRATES TO HANDLE HORTICULTURAL PRODUCE

Costs:
Containers
Materials (liners, trays)
Trained labor
Crate cleaning and repair

Benefits:
Reduced losses due to less crushing and lower produce damage, water loss and weight loss
Higher value paid for higher quality packaged produce

Example: Plastic reusable containers with disposable cardboard liners are used for transport and display during direct marketing. You have reduced postharvest losses due to lower rate of compression damage (fewer failed packages) compared to typical losses of 10percent. If you handle 1000 lbs of produce at an average value of $0.95 per lb, you will have 50 additional lbs of produce to market if the crates reduce postharvest losses to 5percent.

Costs:
$15.00 per crate; initial purchase of 40 crates = $600
Liners cost $0.25 each (40 used per 1000 lbs of produce packed 25 lbs/crate) = $10.00
Current cost of inexpensive fiberboard packages ($1.00 each) = $40.00
Labor cost $7.00 per hour; 2 hours to pack 40 crates = $14.00 (same for either packing container)
Total recurring costs for disposable liners = $10

Benefits:
50 lbs x $0.95 = $47.50 in additional produce marketed per load.
Savings of $40 per load in fiberboard cartons.
Total = $87.50

Return on investment:
Benefits - recurring costs = $87.50 - 10 = $77.50 profit per load.
The cost of $600 for plastic crates is recovered with the first 8 loads, after which you will have an additional profit of $77.50 per load. If you also have the benefit of improved quality due to the investment in improved packaging, profits will be even higher since the market value of the produce will increase.

COMPARISON OF ESTIMATED COSTS AND EXPECTED BENEFITS OF SORTING FOR THE DOMESTIC MARKET

Costs: Equipment, Labor, Packages

Benefits:
Reduced losses due to decay, less spread of infection
Improved overall quality, less damaged produce
Higher market price for highest graded produce

Example:
Unsorted chili peppers packed in 50 lb sacks have a value of $0.20/lb. At a given time, 1000 lbs are packed and marketed to commercial buyers, who must sort the peppers before resale to consumers or for food service use with average postharvest losses due to decay of 15percent. Sorted produce will have additional marketing options.

Costs:
Sorting table $50.00, usable over many seasons.
Labor $7/hour for sorting and packing 20 lb cartons of 3 quality grades
(3 hours for 1000 lbs) = $21.00
48 Packages cost $1.50 each (= $72.00) vs 20 sacks which cost $0.50 each (= $10.00)
Total costs (unsorted) = $10 vs Total costs (sorted/packed) 50 + 21 + 72 = $123
(Total recurring costs for sorting/packing = $21 + $72 = $93)

Benefits:
Unsorted/unpacked market price = $10 /50 lb sack, 20 sacks. Total = $200.00
Sorted/packed market prices:highest grade = $ 0.45 /lb, medium grade = 0.20 /lb, lowest grade = 0.15 /lb

If 60percent of the produce is of the highest grade (30 cartons) = $270
If 25percent is medium grade (12 cartons) = $48
If the remainder are the lowest quality (6 cartons) = $12
Culls (not packed) = 4percent (equivalent of 2 packages)
Total = $330

Expected profits from sorting/grading/packing: This example demonstrates an immediate recovery of invested capital. The first 1000 lbs of peppers sorted and packed pays for the capital outlay (the sorting table); after this, each 1000 lbs packed results in a return of an additional $47 ($330 - $93 in costs = $237) in comparison to peppers sold unsorted in sacks ($200- $10 = $190).

COMPARISON OF ESTIMATED COSTS AND EXPECTED BENEFITS RELATED TO COOLING HORTICULTURAL PRODUCE AND MAINTAINING THE COLD CHAIN DURING HANDLING, STORAGE, TRANSPORT AND MARKETING.

Costs:
Equipment
Power
Labor

Benefits:
Lower postharvest losses
Longer shelf life
Higher quality

Example: Two tons of mangoes harvested at the peak of the season (June 15 to 20) are handled either at ambient temperatures (30 to 35 ºC) or via an integrated cold chain (15 ºC) where cooling costs are relatively high: $1000 ($0.25 / lb).

Ambient temperature vs Cold Chain
____________________________________________
Postharvest losses 35percent vs 10percent

Quality classes:20percent highest vs 50percent highest;
second grade : 50percent vs 30percent

lowest grade: 30percent vs 20percent

Total volume sold: 2600 lbs vs 3600 lbs

Marketing period:June 15-June 28 vs June 15 - August 1

Average price/lb: $0.50 vs $1.25

Sales - cost of cooling : $1300 vs $3500

COSTS AND BENEFITS OF POSTHARVEST IPM PRACTICES

Costs:
materials
labor
power

Benefits:
reduced decay rates or insect losses
longer shelf life
improved quality

Harvest 1000 lbs of green beans, sort, cool and pack beans for marketing in California within one week. Postharvest IPM in this case involves a quick hot water dip (followed by an ice bath) to reduce disease problems during storage and marketing.

Minimal pest controls vs Postharvest IPM
______________________________________
labor for harvest (5 hours at $7.50/hr):$35 vs $35
labor for sorting/grading: $12 vs $12
hot water treatment (0.5 minutes at 52 ºC): $10 for IPM
ice bath: $10 for IPM
postharvest losses: 20percent vs 5 percent
____________________________________
amount available to market 800 lbs vs 950 lbs

market value: $0.50/lb ($400) vs $0.79/lb ($750)

costs: labor: ($47) vs($47)
pest control 0 vs ($20) ____________________________________
Potential net sales: $353 vs $683

COMPARISON OF ESTIMATED COSTS AND EXPECTED BENEFITS RELATED TO TRADITIONAL PACKHOUSE OPERATIONS OR FIELD PACKING FRESH PRODUCE.

Costs:
Equipment (carts, mobile packing stations or wagons equipped with shade)
Trained Labor
Packages suited to field packing, cooling

Benefits:
No packinghouse to maintain
Less damage to produce (no dumping, resorting)
Quick handling (less water loss)

Example:
If 1000 lbs of table grapes are harvested and field packed by 4 trained workers (picked trimmed, packed 25 lbs per carton, and SO2 pads inserted) in 2 hours. Losses are calculated to be 10percent compared to the typical 20percent losses associated with grading, trimming, packing and cooling grapes in a local packinghouse. Workers are paid $1.00 more per hour than usually paid to field laborers who harvest crops to be transported to the packinghouse.
Costs:
Base labor rate = $6.00/hour
Additional labor cost $1.00/hr bonus x 4 workers x 2 hours = $8.00/day
Equipment -- shaded packing station $150.00 (used for several seasons)
Materials -- same grape lugs and pads used in packinghouse = $ 1.50 per set, 4 additional cartons required.
Cooling -- same cost as for packinghouse

Benefits:
Packinghouse power, water and ventilation costs savings = $10 /day
Postharvest losses reduced to 10percent (4 additional cartons per day from the vineyard).
100 lbs x 0.50 per lb = $50

Field Packing vs Packing Shed
Costs
labor: $48 vs $40
packaging: $54 vs 48
shed: $10
Total: $92 vs 98
Losses: 10percent vs 20percent

Returns:
produce for sale: 900 lbs vs 800 lbs
market value: $450 vs $400
Net profit: $358 vs $302

Field packing provides a daily return of $56 more than shed packing. The investment in the shaded packing station can be recovered in less than three days.

There is no charge for mentoring services. Just send an e-mail or mail a letter to Dr. Lisa, and she will do her best to answer your question or point you in the right direction. Many training materials are available via e-mail at no charge. A CDRom packed full of practical training materials is available at a small fee (to cover the cost of copying, postage and packaging materials). Training CD Rom

***** TRAINING IN POSTHARVEST TECHNOLOGY *****